Retail Investors Seek Dividend Stocks Amid Volatile Growth; SOL U.S. Dividend Dow Jones Sees KRW 500 Billion in Net Purchases

[Financial News] As volatility rises in domestic and overseas stock markets, demand is growing among investors seeking to secure cash flow through steady dividends. Cumulative net purchases by individual investors in the SOL U.S. Dividend Dow Jones exchange-traded fund (ETF), which invests in high-quality U.S. dividend-growth stocks, have surpassed KRW 500 billion.
Shinhan Asset Management said on the 15th that cumulative net purchases of the SOL U.S. Dividend Dow Jones ETF by individual investors since its listing had reached KRW 501.4 billion as of the 9th. Its net assets stood at KRW 1.0118 trillion as of the previous day.
Individual investors made KRW 12.3 billion in net purchases of the product over the past month. Although its net assets declined by approximately KRW 44 billion during the same period due to factors including market price adjustments, individual buying continued.
The recent correction in the domestic stock market and increased volatility in the U.S. market are believed to have boosted demand for dividend stocks. With the KOSPI 200 Volatility Index rising to approximately 2.7 times its level a year earlier, the U.S. 10-year Treasury yield climbing to 4.9%, and concerns about inflation fueled by a sharp rise in oil prices, dividend-growth stocks that can provide regular cash flow are drawing attention.
The SOL U.S. Dividend Dow Jones tracks the Dow Jones U.S. Dividend 100 Index, a leading U.S. dividend-growth index. Like the Schwab U.S. Dividend Equity ETF (SCHD), it tracks the same index while making monthly distributions, pursuing both long-term capital growth and regular cash flow.
Kim Jeong-hyeon, head of the ETF Business Group at Shinhan Asset Management, said, "The breakthrough of KRW 500 billion in cumulative net purchases by individual investors reflects the confidence investors have built in our investment approach, which focuses on U.S. dividend-growth companies." He added, "When the market outlook is uncertain, steady dividends can provide an important foundation for maintaining long-term investments."
Shinhan Asset Management also manages other U.S. dividend-growth products, including the currency-hedged SOL U.S. Dividend Dow Jones (H) and SOL U.S. Dividend U.S. Treasury Mixed 50, which can be included as a safe asset in retirement pension accounts.
[email protected] Bae Han-geul Reporter